THOMPSON CREEK ANNOUNCES CLOSING OF ITS SENIOR UNSECURED NOTES
OFFERING
Denver,
CO - May 20, 2011- Thompson Creek Metals Company Inc. (the �Company� or
�Thompson Creek�),
today announced the closing of its previously announced private placement
of $350,000,000 in aggregate principal amount of its 7.375% Senior
Unsecured Notes due 2018. The notes are fully and unconditionally
guaranteed by the following wholly-owned subsidiaries of Thompson Creek:
Thompson Creek Metals Company USA, Thompson Creek Mining Co., Thompson
Creek Mining Ltd., Langeloth Metallurgical
Company LLC, Terrane Metals Corp., Berg General
Partner Corp., Berg Metals Limited Partnership, Cyprus Thompson Creek
Mining Company, Long Creek Mining Company, Blue Pearl Mining Inc.,
Thompson Creek Services ULC and Mt. Emmons Moly
Company. The notes are not convertible into equity of
Thompson Creek. The Company intends to use the proceeds from the
notes offering to fund development of its Mt. Milligan copper-gold mine
and for general working capital.
The Company
also announced its entry into an amendment to its revolving credit
facility (the �Credit Facility Amendment�) that provides for certain
changes to the negative covenants in the revolving credit facility to
permit the issuance of the notes as well as giving the Company more
flexibility to issue additional debt and make investments and capital
expenditures. The Credit Facility Amendment changes the minimum
consolidated liquidity test from an on-going covenant that is required to
be satisfied at the end of each fiscal quarter to a condition that is
only required to be satisfied for 90 days after the Company makes additional
borrowings or issues additional letters of credit under the revolving
credit facility. The Credit Facility Amendment also modifies the leverage
ratio thresholds that are used to determine the interest rate and fees
applicable to the revolving credit facility. As a result of these
modifications, the Company�s borrowing cost under the revolving credit
facility will not increase as a result of the issuance of the notes.
The notes
have not been registered under the Securities Act or any state securities
laws and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration
requirements of the Securities Act and applicable state laws. No
prospectus has been filed in respect of the notes in Canada, and such
notes were issued on a basis exempt from the prospectus requirements, and
subject to certain resale restrictions in Canada, under applicable
Canadian securities laws.
About
Thompson Creek Metals Company Inc.
Thompson
Creek Metals Company Inc. is a growing, diversified North American mining
company. The Company produces molybdenum at its 100%-owned
Thompson Creek Mine in Idaho and Langeloth
Metallurgical Facility in Pennsylvania and its 75%-owned Endako Mine in northern British Columbia. The
Company is also in the process of constructing the Mt. Milligan
copper-gold mine in northern British Columbia, which is expected to
commence production in 2013. The Company�s development projects
include the Davidson molybdenum property and the Berg copper-molybdenum-silver
property, both located in central British Columbia. Thompson Creek
has approximately 967 employees. Its principal executive office is
in Denver, Colorado and its Canadian administrative office is in
Vancouver, British Columbia. More information is available at www.thompsoncreekmetals.com.
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Cautionary Note Regarding Forward-Looking Statements
This news release contains
��forward-looking information�� within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and applicable
Canadian securities legislation. Forward-looking statements
include statements with respect to: future financial or operating
performance of Thompson Creek or its subsidiaries and its projects;
future inventory, production, cash costs, capital expenditures and
exploration expenditures; funding sources for the Endako
Mine expansion and Mt. Milligan development costs; 2011 operating
goals; and 2011 molybdenum prices.
Such forward-looking statements
involve known and unknown risks, uncertainties and other factors which
may cause our actual results, performance or achievements to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, risks related to
general business, economic, competitive, political and social
uncertainties including global economic conditions; volatility in
molybdenum prices; labor cost and materials cost fluctuations; foreign
currency fluctuations; energy price fluctuations; project delays; title
disputes or claims; limitations of insurance coverage; changes in governmental
regulation of mining operations; risks related to the volatility of
Thompson Creek�s share price; changes in environmental regulation; the
actual results of current exploration activities; actual results of
reclamation activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; possible variations
of ore grade or recovery rates; and failure of plant, equipment or
processes to operate as anticipated. Additional factors that
could cause Thompson Creek�s results to differ from those described in
the forward-looking information can be found in the section entitled
��Risk Factors�� in Thompson Creek�s Annual Report on Form 10-K, in
Section 1A of Thompson Creek's Quarterly Report on Form 10-Q and
subsequent documents filed on EDGAR at www.sec.gov and on SEDAR at www.sedar.com. Forward-looking
statements contained herein are made as of the date of this news
release and Thompson Creek disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results or otherwise, except as required by law.
There can be no assurance that forward-looking statements will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such statements.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements.
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